San Diego Housing Market News and Analysis
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Submitted by treehugger on August 14, 2016 - 2:50pm
My grandma is 95, she owns and still ives in her home up in Vallejo. She pays her own bills, with occasional assistance from my mom. For a 95 year old she is still mentally clear.
2 weeks ago she fell down and shattered her femur. She is doing well, but now family is considering her mortality and wondering what is the best way to handle her house into the future? She just came home and is doing well, but what if something else happens and she needs assistance or what if she dies?
My uncle suggested a living trust, but I am not sure that really is the best if she already has her will, the 3 kids each get 1/3 of the house, pretty simple.
I had thought my mom had done a reverse mortgage on grandma's house many years ago and had also been added to the title. My mom is the oldest and is the "executor" of her will and is just in charge in general.....
Mom just called me asking my opinion on a living trust. When I asked a few questions found out no not a reverse mortgage some loan that has about $25,000 left on it at 9% interest rate from 1992. There are also 2 more government loans that my mom is trying to get the paperwork for that she thinks were for $35,000 and $15,000 each. I am not sure what kind they are mom is saying government loan program for seniors that they don't have to pay on, but the interest accrues through the years and now she doesn't know how much they have piled up.
I suggested refinancing to get away from the 9% and pulling money out to pay off the others, but if she has interest accruing and she doesn't have to pay do they come due when she dies? If yes, doesn't seem fair to make them due during her lifetime? Can she refi without disrupting/paying those?
Another option I thought of, but have no idea if feasible, is that she simply add the 3 kids to the title now and when she passes they already own the house and avoid taxes? Then they can pay off whatever loans are outstanding and decide if they want to sell or whatever.
So, my question to the smart kids, any suggestions? What questions do I need answered in order to help my mom and uncles make an informed suggestion to grandma??
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